Portfolio Strategy Any meaningful weakness in the U.S. dollar could accelerate the budding recovery in corporate revenue growth after a multiyear malaise. Following this year's underperformance, lift the industrials sector to…
Cable stocks continue to demonstrate market leadership, largely on the back of the industry ability to persistently raise selling prices at a rate much faster than overall inflation. Cable operators' ability to continually evolve…
Highlights Portfolio Strategy Contrary to popular perception, non-cyclical sectors have led the market so far this year, while deep cyclical sectors are breaking down, in relative performance terms. Our models point to more of the…
The S&P home improvement retailing (HIR) index has a concrete foundation and should benefit from the firming housing backdrop highlighted in the previous Insight. Higher lumber prices flow straight to the bottom line, because HIR…
Highlights Portfolio Strategy Add the S&P asset manager & custody banks index to the high-conviction overweight list. Prospects for higher interest rates bode well for a catch up phase with the rest of the financials sector.…
Highlights Key Portfolio Highlights Improved world economic growth and rising inflation expectations have buoyed global equities (Chart 1). The downside is that financial conditions are tightening and U.S. dollar-based liquidity is…
We took profits on our underweight S&P hotel index position and upgraded to neutral in November, because a number of companies reduced 2017 guidance and revenue per room (REVPAR) expectations at the same time that value had improved…
Media stocks are on track to set new relative performance highs. Media sales growth is in recovery mode. Consumers have significantly boosted spending on media services, as measured by personal consumption expenditures data. Pricing…
Highlights Portfolio Strategy Media stocks are poised to challenge previous relative performance highs as sales growth reaccelerates. Stay overweight. The materials sector has lagged behind the commodity price rally, a sign of…
Highlights The uptrend in consumer confidence has the potential to be lasting, and therefore lead to an acceleration in real consumption over the next several quarters. In contrast, the rise in business optimism is thus far built on…